Davey, Regardless of liquidity, many larger dealers will not make markets less than 1x1. For smaller managers, markets in odd lots can make a difference. Its not a matter of liquidity, it is a matter of giving a sh*t about small orders - large dealers don’t, and I can’t blame them.
Thanks all. My coverage is on funds smaller 3B, and mostly under 1B so the things that smaller fund managers are interested in helps a lot.
i work in high yield and distressed credit; i have no less than 12 boutique firms that trade odd-lots for off the run stuff. for my business, you’re not making a sale with a pitch on odd lot trades. 9 months ago you could. my take.
Thats encouraging to hear. I probably have about half that. I wasn’t suggesting that trading odd lots would be a driver, per se, but definitely a perk. Plenty of guys willing to do it a point away, but trying to get real markets in small size is tough. Sure, anyone willing to work an order (ie showing the entire free world what you are doing), but few willing to to actually commit capital and make real markets.
Anyone here at community banks? Do you prefer a call with a story bond/MBS pool or the sales guy selling his firm and capabilities?